The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, focuses on economic growth, tax relief for the middle class, infrastructure development, and fiscal prudence. The budget has estimated Total Receipts (Excluding Borrowings): ₹34.96 lakh crore, Net Tax Receipts: ₹28.37 lakh crore and Total Expenditure: ₹50.65 lakh crore.

Key highlights include:

• Fiscal Outlook:

  The government aims to reduce the fiscal deficit to 4.4% of GDP for 2025-26, demonstrating a commitment to fiscal prudence while supporting growth initiatives.

• Taxation Reforms:

  - Increased Tax Exemption Limit: The income tax exemption threshold has been raised to ₹12 lakh per annum, aiming to boost disposable income and consumer spending

  - Salaried Taxpayers Benefit: Those earning up to ₹12.75 Lakh pay NIL tax due to a ₹75,000 standard deduction.

• Agriculture and Rural Development:

  - Pulses and Cotton Production Initiatives: A six-year mission has been launched to enhance the production of pulses and cotton, aiming to reduce import dependence and support farmers.

  - Kisan Credit Card Loan Limit Increase: Raised from ₹3 lakh to ₹5 lakh under a Modified interest

  subvention scheme (MISS)

  - Prime Minister Dhan-Dhaanya Krishi Yojana: This scheme focuses on improving agricultural productivity and sustainability through various support measures.

• Startups and MSMEs:

  - Credit Cards for Micro Enterprises: Customized Credit Cards with a ₹ 5 lakh limit for micro enterprises registered on Udyam portal.

  - New Entrepreneur Scheme: Offers term loans up to ₹2 crore for 5 lakh women, Scheduled

  Caste, and Scheduled Tribe first-time entrepreneurs over five years.

• Investment

  - Support to states for Infrastructure: With an outlay of Rs. 1.5 lakh crore, 50-year interest free loans to states for capital expenditure and incentives for reforms.

  - ₹20,000 crore allocated for private-sector-driven R&D and innovation.

• Exports

  - Infrastructure & Warehousing: Government-backed improvements in air cargo facilities,

  especially for high-value perishable horticulture products.

• Senior Citizens’ Interest Income: TDS deduction limit doubled from ₹50,000 to ₹1 Lakh.

• Rent TDS Threshold Increased: From ₹2.4 Lakh to ₹6 Lakh per annum.

• Encouraging voluntary compliance: Extended Time for Filing Updated Tax Returns from 2 years to 4 years.

• Charitable Trusts & Institutions: Registration period extended from 5 years to 10 years.

• FDI Limit in Insurance: Increased from 74% to 100%, applicable to companies reinvesting all premiums in India.

• Indirect tax reforms:

  - Seven Tariffs Removed.

  - No More than One Cess or Surcharge to be Levied.